This Week’s Option Recommendation Buy the Silver Wheaton - TopicsExpress



          

This Week’s Option Recommendation Buy the Silver Wheaton December $25 call for $175 or less, good this week. Shares of Silver Wheaton Corp. trade on the New York Stock Exchange under the symbol “SLW”. The expiration date for this option is December 21, 2013. SLW closed Friday at $23.29, and the recommended option closed $172 bid at $175. SLW’s 52-week range is $17.75-$41.30. The $25-strike call is an “out-of-the-money” option, with its premium for time and volatility only. I’ll tell you why I like a call recommendation here. Following a spring swoon, silver shares are gathering summertime support. Consecutive sessions posting positive character of price movement fortify support and imply the likelihood of higher prices down the road. Weaker bulls have been thinned and I’m looking for a move up to challenge overhead resistance. Support is at $21-$22.95 and $17.50-$20. Resistance is at $24-$26 and $28-$31. Traders may target a move in SLW toward $30. If SLW rises to $30, each $25-strike call will have $500 of intrinsic value. If my expectations go awry and SLW is at or below $25 on the third Friday in December, your option will expire worthless. That is your risk.
Posted on: Mon, 12 Aug 2013 05:17:47 +0000

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